Knowledge worker as an important element of an organization in the new economy

Anna Kwiecień

Knowledge worker as an important

element of an organization in the

new economy

Ekonomiczne Problemy Usług nr 105, 221-229

2013

NR 763

EKONOMICZNE PROBLEMY USŁUG NR 105

2013

ANNA KWIECIEŃ

U niw ersytet E konom iczny w K atow icach

KNOWLEDGE WORKER AS AN IMPORTANT ELEMENT OF AN ORGANIZATION IN THE NEW ECONOMY

Introduction

R esult o f the reorientation o f N ew E conom y that is gradual transition form a m anufacturing-based econom y to a service-based, know ledge, inform ation-based econom y results in creation o f the N ew E conom y or as it has been nam ed the K now ledge E co n o m y 1 It has changed com petition by m aterial, econom ic resources into com petition by im m aterial resources, especially by hum an resources, know ledge as w ell as new technologies. It is w orth m entioning that know ledge w hich plays crucial role in N ew E conom y has been possessed by people and th ere­ fore they should be considered as the basis o f the N ew E conom y enterprises. In such circum stances these people should be referred to as know ledge w orkers.

The com plete success o f the N ew E conom y enterprises depends on the w ay know ledge is used to gain profits. T herefore successful cooperation w ith know ledge w orkers is necessary. T hey are specialists and professionalists w ho are m obile and independent at w ork, that is w hy one should try to build sound w orking relations w ith them . R elations based on high m otivation and trust.

In the light o f these considerations the given w ork w ill focus on basic term s im portant as far as corporation w ith know ledge w orkers in the N ew E conom y en­ terprises is concerned.

This is the essence o f the N ew E conom y, the notion o f know ledge and a know ledge w orker as w ell as tools w hich facilitate effective corporation w ith know ledge w orkers. The aim o f the p ap er is pointing at the im portance o f

1 In the given paper the term New Economy is used interchangeably with the term Knowledge Economy - gospodarka oparta na wiedzy (GOW).

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know ledge and know ledge w orkers w ho guarantee success o f the N ew E conom y enterprises. It is also to show the m ost im portant elem ents o f corporation w ith know ledge w orkers.

1. The term New Economy

The term N ew E conom y has n o t been y et fully defined and unified. N ev erth e­ less, there are m any w ho agree that developm ent and spread o f tele-inform ation technologies highly changes theory and practices o f such branches as business, m anagem ent, econom y and m ark etin g 2.

Inform ation and know ledge serve as an additional value, they increase effec­ tiveness and efficiency o f m anagem ent. The quality they possess, as w ell as the fact they are 'up-to-date', are im portant com petitive factors fo r the N ew E conom y enter­ prises. Som e characteristic features o f the N ew E conom y can be defined. O ne can describe it as:

- inform ative - it is based on abilities to generate, data processing and com ­ m ercializing inform ation,

- global - deals w ith actions on a global, w orldw ide scale,

- w eb related - it functions in integrated 'm odels' o f w eb w hich connect m any, different participants.

N ew E conom y has nothing in com m on w ith previous industrial patterns. It introduces its ow n logic w here constant search for, as w ell as increasing of, oppor­ tunities is present. M oreover, it is based on know ledge, creativity, dynam ism . It requires increased flexibility and an open approach tow ards business environm ent from each com pany. In such circum stances organizations are ready fo r certain changes, they can m ake th eir structures m ore flexible. H ierarchical order tends to be m ore flexible as w ell, fixed procedures are abolished and w orkers gain m ore autonom y. T heir self-education is facilitated and they are m otivated to take ad­ vantage o f their know ledge w ith an invention o f satisfying th eir custom ers' needs.

2. Knowledge the basic resource of the New Economy

D escription o f the concept o f the K now ledge E conom y requires u nderstand­ ing w hat in fact know ledge is. A s inaccurate definitions m ay be confusing and m ay lead to m isunderstanding. A ccording to the subject literature, inform ation and data

2 M. Marczuk: Krótka charakterystyka nowej gospodarki, w: Internet - fenomen społe­

czeństwa informatycznego, T. Zasępa (ed.), Wydawnictwo Edycja św. Pawła, Częstochowa 2001,

are the basis o f know ledge. T hey becom e know ledge them selves after th eir p ro ­ cessing is com pleted3.

To define it m ore precisely, the basic u n it o f inform ation is data. C ollection o f inform ation w hich is structuralized and interpreted by know ledge. The ability to m odify, use and create know ledge is on the o ther hand defined as w isdom . K now ledge can be characterized as a flexible substance w hich is an effect o f m ental processing o f inform ation that som eone h ad gathered. A s it is related to hum an beings, and is a part o f a com plex hum an nature, it is difficult to be understood and predicted. It is flexible com bination o f already shaped, form ed experience and v al­ ues, structuralized inform ation and precise inside overview w hich helps to evaluate and introduce new experiences and inform ation4.

T here are three form s o f know ledge to be achieved5: - Personalized - m ental form , it is transferred by hum ans,

- E stablished - related to services, relations, products, brands, processes, technologies,

- C odified - a collection o f inform ation, is it transferred, presented by p ro ­ je c ts, data, docum ents o r publications,

K now ledge is an abstract concept. It is untouchable and invisible, it cannot be seen or touched and therefore it is described as invisible, im m aterial resource. K now ledge is difficult to be presented as its w orth depends on different situations w here one needs certain inform ation, know ledge. W e know w e w ant to know som e­ thing only in the m om ent w hen there is a need to know it6. One can find it in m any different kinds o f docum ents, how ever, the m ajor part o f it is gathered in hum an m ind and is transferred by hum ans. T herefore, hum an resources are so essential as far as know ledge is concerned.

3. Knowledge workers

The issue o f the N ew E conom y functioning is inform ation m anagem ent in ­ cluding know ledge m anagem ent. H ow ever, as it has been pointed earlier, hum ans are the m ost responsible fo r transferring inform ation in an enterprise. It m ay suggest that progress o f hum an resources m ay lead to progress o f know ledge in w hole com ­ pany. A s w orkers are related to know ledge, different category o f a w orker- that is

3 J.J. Brdulak: Zarządzanie wiedzą a proces innowacji produktu, budowanie przewagi

konkurencyjnej firmy, Szkoła Główna Handlowa, Warszawa 2005, p.14.

4 T.H. Davenport, L. Prusak: Working Knowledge. How Organisations Manage What They

Know, Harvard Business School Press, Boston 2000, p. 5/after/; F. Krawiec, Strategiczne myślenie w firmie, Difin, Warszawa 2003, p. 65.

5 Podstawy zarządzania przedsiębiorstwami w gospodarce opartej na wiedzy, B. Mikuła,

A. Pietruszka-Ortyl, A. Potocki (eds), Difin, Warszawa 2007, p. 113. 6 Ch. Evans: Zarządzanie wiedzą, PWE, Warszawa 2005, p. 30.

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a know ledge w orker; has been introduced. K now ledge w orkers are those w ho p o s­ sess high level o f specialized know ledge, education o r experience. T heir w ork co n ­ sists o f using, creating o r distributing kno w led g e7. T hey belong to a new category o f specialists. The goal o f th eir w ork is an effective usage o f gathered know ledge as w ell as know ledge exchange. T heir task is to plan, create and introduce new ideas w hich w ill m ake it possible fo r a given organization to adjust its strategy to constant changes in a business environm ent.

T hese w orkers are to search, exchange, jo in and use know ledge w ithin organi­ zation structures as w ell as outside organization8. It has to be em phasized that a know ledge w orker, because o f an ability to use his o r h er know ledge, can have (in som e circum stances) high influence on a given organization. H e can provide a con­ siderable value to an organization.

K now ledge w orkers can be characterized by:

- their ow n intellectual property - experience, thoughts, intellectual capability, - their ow n social property - social connections, acquaintances, social position, - confirm ed qualifications,

- confirm ed achievem ents,

- financial situation - factor determ ining independence and quality o f w o rk ­ er's services9.

K now ledge w orkers are considered to be professionalists. T hey possess high com petence, abilities to play different organizational roles, versatile experience, capabilities and abilities and m obility. M oreover, they are very independent as they only sell th eir services to the certain extent so they are free to change their em ploy­ ers w hich m ay lead to loss o f profits o f an organization they are about to leave. Thus, it is im portant to elim inate risk o f losing a know ledge em ployee.

4. Motivation and trust as important aspects of knowledge workers management

W hen success o f an organization and its com petitiveness are rather based on know ledge usage and m an ag em en t10 than on physical, m aterial and financial re ­ sources allocation, a w o rk er h im se lf is perceived as the m ost profitable investm ent in an organization.

7 T.H. Davenport: Thinking fo r a Living: How to get better performance and results from

knowledge workers, Harvard Business School Press, Boston - Massachusetts 2005, p. 10.

8 Dopasuj strukturęfirmy do nowych -wyzwań komunikacyjnych, Harvard Business Review

Polska 2009, p. 122.

9 A.K. Koźmiński: Zarządzanie w -warunkach niepewności, PWN, Warszawa 2004, p. 78. 10 A. Jaruga, J. Fijałkowska: Rachunkowość i zarządzanie kapitałem intelektualnym - kon­

Investm ent in hum ans resources brings m any gains. S elf-respect o f a given w orker increases, person's dignity, ego is protected, he or she has a feeling o f jo b fu lfill­ m ent and as a result he is m ore interested in w ork o f his or h e r org an izatio n 11. E ve­ ry investm ent in hum an resource is an investm ent resulting in hum an resource ac­ cum ulation or increase in hum an resource p ro d u ctiv ity 12. T here are certain d iffer­ ences betw een it and other investm ents.

F irst o f all, it carries a g reat am ount o f risk as it deals w ith an autonom ic sub­ je c t o f investm ent and an increase rate that is difficult to assess. Such investm ents can be o f other nature, n o t only m aterial one. One can invest in suitable w orking conditions and sound atm osphere trying to provide sense o f tru st and partnership.

K now ledge w orkers are professionals w ith individual com petences, intellectu­ al capabilities w ho are perfect at w ork they perform , th at is w hy they are very m o ­ bile. T hey can change w ork place easily w hich m ay m ean a g reat loss fo r an em ­ ployer. K now ledge w orkers do n o t have to w orry about w ork tim e and place, b e ­ cause they are m obile and com petent, so they can w ork w henever and w herever they w ant. It is an organization w hich is the m ost interested in hiring a know ledge w orker. U sually he does not care w hich organization he w ill w ork for, he can d e­ velop his carrier in every o rg an izatio n 13.

It is w orth noticing that such w orkers possess special resource w hich is know ledge w hich value does n o t decrease even w hen it is transferred to others. Thus, know ledge w orkers can also w ork fo r an organization as w ell as fo r its com ­ petitors. T herefore, keeping a know ledge w o rk er in a given organization seem s to be difficult and very im portant task. It can be quite a challenge to constantly m o ti­ vate and encourage know ledge w orkers to w ork fo r a given organization. A n organ­ ization should be m anaged in such a w ay to provide good w orking conditions, so that a know ledge w orker and his capabilities stay in a given com pany. A n em ployer has to be aw are o f the fact th at good relations w ith his w orkers are very crucial as their know ledge is a w eapon w hich can be turned against him and used by his com ­ petitors. Sound relations in an organization, m otivation system and tru st can g u aran ­ tee th at w orkers w ill be loyal. T hus, an effective m otivation can be quite a ch al­ lenge. G ood m otivation m eans encouraging w orkers to be creative and to use re ­ sources they possess w hich a com pany is n o t alw ays aw are of. M oreover, this group o f w orkers have different needs than other w orkers. They are m uch m ore interested in fulfilling higher needs, self-satisfaction, gaining respect, appreciation.

11 M. Jagódka: Kapitał ludzki jako czynnik wzrostu konkurencyjności przedsiębiorstwa, EiOP2011,No. 4, p. 31.

12 Discussed more in: P. Bochniarz, K. Gugała: Budowanie i pomiar kapitału ludzkiego

w firmie, Poltext, Warszawa 2005, p. 119.

13 K. Perechuda, M. Morawski: Zarządzanie -wiedzą w przedsiębiorstwie, PWN, Warszawa 2005, p. 204-207.

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Financial motivation is not a very effective one. What is more important is

working atmosphere, perspective for a carrier or a sense of autonomy. Furthermore,

it is important to encourage them to share their knowledge so that good ideas and

plans can be spread in whole organization. It appears to be difficult as sharing

knowledge does not lie in human nature.

The problem is not only related to an individual but also to an organizational

culture which does not encourage sharing knowledge process14.

Therefore, there is a need to create motivation system that will eliminate all

the barriers holding free knowledge, information flow. Workers should not be as­

sessed only because of their work results. The ability to share knowledge should

also be evaluated. These procedures enable keeping knowledge in an organization,

its sharing and development. Trust in relations in a given organization is, apart from

motivation system, one of the constant notions in the world of changing concepts of

organization management which guarantee best solutions and effective cooperation

with knowledge workers. Organizations should build good relations with their

workers based on strategic partnership. They should also invest in human resources

and development of organizational culture which can assure effective work, self­

development of workers and their long-term working satisfaction. All of the above

is based on a mutual trust. It is understood as a trust of a knowledge worker who

knows he will not be used by an employer. On the contrary he will be treated hon­

estly and his good will be valued. It is a factor which can provide work commitment

and start psychological contract between a worker and an employer.

If one wants to gain trust, confidence of his employees he should follow cer­

tain rules :

1.

Communication ought to be open. Management should share vital infor­

mation with their workers and talk over important issues during regular

meetings. Organization management should be aware of all the factors

which motivate and demotivate workers.

2. Keeping promises. Companies should always keep what they promised to

workers. In other way, workers will loss trust, confidence in management

completely.

3. The way workers are treated- they should be treated equally. Nobody

should be favored or discriminated. Management ought to choose a strate­

gy to keep valuable employees, develop leadership skills and what is the

most important respect employee as a unique human being.

4. Role of a leader - role of a supervisor - a leader plays a significant role

when it comes to building trust in an organization. According to Peter

Druker: "You cannot prevent a major catastrophe but you can build an or­

ganization that is battle-ready, where people trust one another. In military

14 E. Krok: Kluczowe aspekty zarządzania wiedzą, Studia i Materiały Polskiego Stowarzy­ szenia Zarządzania Wiedzą, Bydgoszcz 2007, No. 8, p. 93-94.

training, the first rule is to instill soldiers with trust in their officers-because

without trust , they won't fight".

5. Human relations - management should stay in touch with workers all the

time. It is good when workers are informed of management's plans, goals,

ideas.

6.

Organization takes care of a worker - an employer should not only be inter­

ested in employee's work and his achievements. It is important to remem­

ber that workers have also other aims and needs in life not only these relat­

ed to work15.

Apart from the above rules helping to build trust between employers and

knowledge workers, one can notice three ways of behaving which are facilitators

for building this trust:

-

creating common vision and understanding the way an organization acts. It

requires sharing the same way of thinking, aiming at the same goals, simi­

lar way of working as well as approving the same organizational system of

work assessment and job rewarding;

-

pointing at behaviors which build trust - active listening, encouraging

knowledge workers to express their own opinions. Relations between

knowledge workers are very important for building high level of trust;

-

group meetings- although integration does not always help to build trust,

meetings provide a chance of conversation which is a sign of goodwill and

openness. Members of other working teams may find it difficult to frequently

meet. Therefore, managers should help them to keep contact. It is important

to create real as well as virtual ways, aspects, channels of building trust in an

organization. When workers trust organization and its management they are

loyal, interested in fulfilling plans of their organization. Moreover, clients

and contractors tend to trust organization more and company is perceived as

more successful, attractive on the market. It means keeping the best workers

in a company and attracting, employing new ones.

Conclusions

In conclusion, it m ay be noticed that w ith the N ew E conom y a new epoque o f intellectual resources o f an organization has started 16.

A m ong them there is know ledge, very flexible substance w hich is an effect o f inform ation processing w hich are stored in hum an b ra in 17. It adds value to goods

15 http://www.tipy.pl/artykul_558jak-zbudowac-zaufanie-pracownikow.html

16 Scenariusze, dialogi i procesy zarządzania wiedzą, K. Perechuda, M. Sobińska (eds), Di- fin, Warszawa 2008, p. 219.

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Anna Kwiecień

w hich are produced and is a source o f ideas, inspirations and abilities im portant fo r an o rg an izatio n 18.

N evertheless, people - are the m ost im portant as they share know ledge w ith others. T herefore, the position o f know ledge w o rk er appears. It is a professionalist w ho is m obile and independent at w ork. Thus, there is a risk o f losing this w orker and his abilities together w ith his know ledge. To prevent it, each organization should be m anaged in a w ay to use this know ledge effectively. This m anagem ent should consist o f high m otivation system w hich w ill encourage know ledge w orkers and provide m utual tru st in know ledge sharing processes.

N ow adays hiring know ledge w orkers is a necessity fo r an organization. M an ­ aging these em ployees is, on the other hand, a challenge because they are aw are o f their ow n value. One can honestly say that the key to success is now full com m it­ m ent o f all the w orkers. In order to achieve this com m itm ent an organization should take care o f know ledge w orkers and provide them w ith conditions fo r self- devel­ opm ent and carrier developm ent. K now ledge w orkers are role m odels fo r other em ployees w ho can m odel upon them and as a result w ork m ore effectively.

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PRACOWNIK WIEDZY

JAKO ISTOTNY ELEMENT PRZEDSIĘBIORSTW NOWEJ EKONOMII

Streszczenie

Celem niniejszego artykuły było zwrócenie uwagi na ogromne znaczenie wiedzy

i pracowników wiedzy, którzy są podstawą funkcjonowania przedsiębiorstw w Nowej

Gospodarce oraz na właściwe podstawy efektywnej współpracy z tymi pracownikami.

W artykule omówiono pojęcie Nowej Ekonomii, wiedzy i pracownika wiedzy. Wska­

zano także istotne elementy zarządzania pracownikami wiedzy, podkreślając, że pod­

stawą takiego zarządzania jest odpowiedni dla pracowników wiedzy system motywacji

oraz wzajemne zaufanie w racjach, które warunkuje efektywny proces dzielenia się

wiedzą.